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| Version 0 | Version 1 |
|---|---|
| Post Office future to be outlined | Post Office future to be outlined |
| (about 8 hours later) | |
| The government is set to confirm its plans for the future of the Post Office later, including how many branches it expects will have to close. | The government is set to confirm its plans for the future of the Post Office later, including how many branches it expects will have to close. |
| Trade and Industry Secretary Alistair Darling will reveal the level of grant it will give to subsidise the running of rural post offices. | Trade and Industry Secretary Alistair Darling will reveal the level of grant it will give to subsidise the running of rural post offices. |
| It is thought the new funding package will result in the closure of up to 3,000 offices. | It is thought the new funding package will result in the closure of up to 3,000 offices. |
| The Royal Mail currently receives £150m a year in a deal which expires in 2008. | The Royal Mail currently receives £150m a year in a deal which expires in 2008. |
| The Royal Mail has said the size of the network depended on the level of government funding it receives. | The Royal Mail has said the size of the network depended on the level of government funding it receives. |
| Losing business | Losing business |
| The Department of Trade and Industry has described the current size of the network of 14,000 post offices as "unsustainable". | The Department of Trade and Industry has described the current size of the network of 14,000 post offices as "unsustainable". |
| Mr Darling said the Post Office was serving four million fewer customers than two years ago and was losing £4m a week, up from £2m last year. | |
| He said there was a need to strike a sensible balance between closing those branches with too few customers and providing a national network of post offices. | |
| "We need to deal with that but we do need to ensure we have a national network because we recognise the importance of the Post Office to people the length and breadth of the country," he said. | |
| Post offices were hit after the decision to pay pension and child benefit directly into bank accounts. | Post offices were hit after the decision to pay pension and child benefit directly into bank accounts. |
| TV licences, driving licences and passports have also gradually switched to being sold online or through other retailers. | TV licences, driving licences and passports have also gradually switched to being sold online or through other retailers. |
| Compensation | |
| The BBC learned at the weekend that between 2,500 and 3,000 post offices - mostly in rural areas - face phased closure after the government announcement. | The BBC learned at the weekend that between 2,500 and 3,000 post offices - mostly in rural areas - face phased closure after the government announcement. |
| It is understood there will be compensation packages of £40,000 to £70,000 for sub postmasters. | |
| General Secretary of the Federation of Subpostmasters, Colin Baker, said his members provided a social service which was dearly loved. | |
| He accepted there was a financial case, insisting talks were needed on how to create a sustainable network for the future. | |
| "The government have had that viewpoint recently that they can do without the Post Office which I think the nation this year has told them in resounding terms, that they can't." | |
| You cannot carry on putting a massive amount of public subsidy into this Prime Minister Tony Blair | You cannot carry on putting a massive amount of public subsidy into this Prime Minister Tony Blair |
| Closures | |
| Prime Minister Tony Blair insisted on 12 December the consumer and not government policy was to blame for potential post office closures. | Prime Minister Tony Blair insisted on 12 December the consumer and not government policy was to blame for potential post office closures. |
| He said: "You cannot carry on putting a massive amount of public subsidy into this. | He said: "You cannot carry on putting a massive amount of public subsidy into this. |
| "Now we will look for ways in which we hopefully can stabilise the situation, and give the majority of post offices a way forward for the future. | "Now we will look for ways in which we hopefully can stabilise the situation, and give the majority of post offices a way forward for the future. |
| "But the reason why under the previous government and under this government post offices have continued to close is not because it has been government policy to close them - it has been because people have made an individual choice to transact their business differently." | "But the reason why under the previous government and under this government post offices have continued to close is not because it has been government policy to close them - it has been because people have made an individual choice to transact their business differently." |
| Campaigners say thousands of elderly people across the country are worried about the closures. | Campaigners say thousands of elderly people across the country are worried about the closures. |
| Age Concern's director general Gordon Lishman said: "It's time the government started listening to the people who use and depend on their post office." | |
| A long battle by campaigners has seen four million people sign a petition calling for rural post offices to be saved. | A long battle by campaigners has seen four million people sign a petition calling for rural post offices to be saved. |